Avon Protection


Market Cap£633m

Last Close 2040p

Avon Protection designs, develops and manufactures personal protection products for Military and First Responder markets. Its main customers are national security agencies such as the US DOD and c 90% of sales are from the United States.

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Investment summary

Avon Protection has indicated that management guidance for FY21 revenue and EBITDA margin has been achieved before an additional one-off, non-cash inventory write-down of around $4m in ballistics. Cash generation was better than anticipated after record levels of investment and order intake remained strong despite previously indicated pandemic delays. The healthy opening backlog underpins strong growth in FY22 as ballistics revenues ramp up, Team Wendy makes a full year contribution and EBITDA margins should recover as volumes improve. Following COVID and the ballistics deferrals, Avon’s focus on protection markets continues to offer a strong pipeline of potential contracts to support continued growth in FY23.

Y/E Sep
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2019A 162.0 36.2 28.3 84.9 32.8 96.6
2020A 213.6 52.3 36.0 96.2 29.0 N/A
2021E 248.0 43.5 25.6 66.7 41.8 250.9
2022E 328.9 71.5 46.8 122.2 22.8 10.1
Industry outlook

Avon’s long-standing, multi-level relationship with the US DoD is important to the group and the end market backdrop is supportive. The focus on higher-price sophisticated mask systems is proving successful, with M50 mask system replenishment and the addition of helmets and body armour provides further opportunities. We believe that Avon has the market position, product portfolio and strategic ambition to continue its growth through organic and inorganic means.

Last updated on 20/10/2021
Content on Avon Protection
Avon Protection – Confirming the growth path
Industrials | Flash note | 13 October 2021
Avon Rubber – Protection is the name of the game
Industrials | Update | 27 May 2021
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Share price graph
Balance sheet
Forecast net debt (US$m) 28.7
Forecast gearing ratio (%) 12
Price performance
Actual 14.0 (17.3) (50.1)
Relative* 10.3 (21.1) (59.9)
52-week high/low 4625.0p/1763.0p
*% relative to local index
Key management
David Evans Chairman
Paul McDonald CEO
Nick Keveth CFO